What Happens to Your Utilities?
- By Chicagoland Bankruptcy
- •
- 27 Jun, 2014
Many people have strong fears about filing for bankruptcy on the basis that they may lose important services that they need for everyday life. While, many of these fears are reasonably rooted in half-truths about the bankruptcy code, they are often unfounded as they don’t take into account the full protection offered by bankruptcy. Many... Read more »
Many people have strong fears about filing for bankruptcy on the basis that they may lose important services that they need for everyday life. While, many of these fears are reasonably rooted in half-truths about the bankruptcy code, they are often unfounded as they don’t take into account the full protection offered by bankruptcy. Many debtors worry about losing their access to utilities; however this does not have to happen when a person files for bankruptcy. While these companies may shut off the power or water under certain circumstances, there are also protections available to prevent this.
If you’re thinking about filing for bankruptcy to help you break free of your overwhelming debt, you may want to consult with a legal advisor in order to learn more about the law and how you will be affected. To discuss what protections may be available to you, contact our Joliet Chapter 7 bankruptcy lawyers at the Law Offices of Stuart B. Handelman at 815-722-2201 today.
Utility Protection in Chapter 7 Bankruptcy
Utility Protection in Chapter 7 Bankruptcy
Chapter 7 bankruptcy usually affords debtors extremely powerful bankruptcy protections, including ones that can keep a person’s utilities running despite going through the liquidation process. In order to use this protection, debtors typically need to offer their utility company a form of assurance of payment, such as:
A deposit of cash
A letter of credit
Paying ahead for future services
Agreed upon payment methods between the utility company, the debtor, and the trustee
A letter of credit
Paying ahead for future services
Agreed upon payment methods between the utility company, the debtor, and the trustee
A person has twenty days to provide these assurances to their utility company. If they can’t provide this assurance or simply can’t pay, they may not be able to adhere to the court’s demands for this bankruptcy protection and may have their services shut off.
Contact Us
Contact Us
If you’re battling to keep your household in order prior to filing for bankruptcy, we can help you understand what options are available to you. For additional information regarding bankruptcy provisions and law, contact our Joliet Chapter 7 bankruptcy attorneys of the Law Offices of Stuart B. Handelman today by calling 815-722-2201.
Many people filing for bankruptcy do so in the hopes of stopping their lenders from foreclosing on their homes. Bankruptcy offers some powerful legal tools to help these people protect their houses and property from being repossessed by their creditors. However, completely preventing a foreclosure is not guaranteed in all cases of bankruptcy. If your... Read more »
When a debtor files for bankruptcy, they may want to give certain creditors priority of payment. However, priority is a complicated issue in these proceedings. In many situations, a debtor will have little to no say about which creditor is given priority during repayment or after liquidation. In these situations, it is often the decision... Read more »
With the help of a bankruptcy attorney, a person may be able to carefully handle their debt problems and lower or eliminate their obligations to creditors. However, this doesn’t mean that a person can intentionally rack up debt before filing for bankruptcy. If a person uses their credit cards heavily before filing for bankruptcy and... Read more »
